Family composition is a key component of well being for the older population. Family members (especially spouses and children) are important sources of assistance with household tasks and activities of daily living. Social support provided by family members has been shown to be associated with improved health and longevity, while access to children or other family members serves both to delay entry into a nursing home and to hasten exit from a nursing home. This study will continue and extend a newly-funded project examining the demographic underpinnings of living and care arrangements of older people in Germany and the United States. The research addresses questions concerning living arrangements-what percentage of older Germans and Americans live alone, with children, or with others; how are living arrangements influenced by the availability of kin, as well as by other factors such as age, income, and disability status; and, do demographic factors influence entry into nursing homes-and questions concerning their receipt of care-what types of help do children provide their elderly parents; do elders living alone receive help from their children; and, does the availability of children reduce utilization of formal and other extrafamilial sources of assistance. The research on living arrangements will pertain to Germany and the United States, and will use data from the German Socio-Economic Panel (GSOEP) and Asset and Health Dynamics of the Oldest-Old (AHEAD) studies. Comparisons will be drawn between East and West Germany, as well as between Germany and the United States The analysis will include estimation of cross- sectional and dynamic models of living arrangements, and microsimulation of lifetime use of nursing home services. The research on care arrangements will pertain to Germany only. Of particular interest is the impact of Germany's 1994 Dependency Insurance Act, which established a new program to reimburse expenses of both community-based long-term care (beginning in 1995) and nursing home residence beginning in 1996.